As a result of barriers imposed by El Salvador on dairy products from Nicaragua and the crisis in the country, in the first half of the year sales reports showed a year-on-year fall of 9%.
According to statistics from the Central Bank of Nicaragua (BCN) in the first six months of the year cheese exports totaled $54 million, 9% less than the $60 million recorded in the same period in 2017.
It has been estimated that since the crisis began in Nicaragua, losses in trade between Nicaraguan and Salvadoran companies amount to $12 million.
The cheese and milk trade is the area that has been most affected by the socio-political crisis occurring in Nicaragua.According to representatives from the Ministry of Economy of El Salvador, losses in bilateral trade not only of cheese and milk, but also of other goods, amount to $12 million.
In the first quarter of the year, trade in milk and dairy products among Central American countries totaled $77 million, and 73% was purchased by companies in El Salvador and Guatemala.
Figures from the Information System on the Milk and Milk Products Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
In the context of the difficult situation that Nicaragua is facing, the Ortega administration has announced its projections for agroindustrial production, consumption and trade for the period 2018 -2019.
From a statement issued by the Central Bank of Nicaragua:
August 15, 2018.Authorities at the National System of Production, Consumption and Trade (SNPCC) of the Government of Nicaragua presented to the Central Bank of Nicaragua (BCN), the Production, Consumption and Trade Plan corresponding to the 2018-2019 cycle.
On October 10 and 11, entrepreneurs from the milk and dairy sector will be meeting in the province of Heredia to discuss topics of interest and showcase their products.
The National Chamber of Milk Producers and the Central American Federation of the Milk Sector are organizing the VII Central American Congress of the Milk Sector, which will be held at the Pedregal Events Center, located in Heredia, Costa Rica.
In 2017, trade in milk and dairy products among countries in the region amounted to $306 million, 2% more than what was sold in 2016, and the highest value in the last six years.
Figures from the Information System on the Milk and Milk Products Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
The sector is backing new destinations such as the Dominican Republic and Cuba, through a commercial mission that will travel to these countries in search of potential buyers.
According to representatives from the Embassy of the Dominican Republic in Nicaragua, the Caribbean country imports from Europe and the US, milk powder, cheese and other dairy products. They explained that the requirements for the entry of products are "technically possible and in sanitary terms are those that are necessary."
Despite the new import requirements imposed by the Salvadoran government, in 2017 the Nicaraguan dairy industry managed to maintain the level of its exports to its neighboring country.
Data from a report by Cetrex shows that 2017 will have closed with growth of just 3% in exports of dairy products to El Salvador, which is positive for entrepreneurs in the sector, who in the middle of the year anticipated less favorable figures, due to the entry into force of themore restrictive import controls.
The guild of farmers in Nicaragua plans to close 2017 with more than $700 million in exports of meat and dairy products.
According to the Federation of Livestock Associations of Nicaragua (Faganic), exports of dairy products amounted to around 71,725 tons, which generated revenues of $154 million, while in terms of meat products, 133 thousand tons were sold abroad, worth more than $513 millions.
Pharmaceutical products, plastic, food preparations, sugar and confectionery, and electrical cables are the main products that are sold to companies in the Dominican Republic.
Figures from the information system "Trade between Central America and the Dominican Republic", compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Clic to interact with the chart"]
The Latin American Bank for Foreign Trade has granted Dos Pinos a syndicated loan of $100 million over five years, for three of the companies belonging to the cooperative.
The loan to Cooperativa de Leche Dos Pinos was structured as a "Club Deal" between Bladex, Banco General, S.A. and Banistmo, S.A., who acted as co-structurers.Bladex also serves as the Administrative Agent at the facility.
In the last year, 56 environmental impact studies were presented for the construction of industrial plants in Central American countries.
The interactive platform "Construction in Central America", compiled by the Business Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions in each country.
In 2016 Central American countries imported 74,573 tons of cheese and curd, 4% more than in 2015.
Figures from the information system on the Cheese and Curd Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData : [GRAFICA caption = "Click to interact with the graph"]
In August, the FAO food price index fell by 1.3% compared to July, due to lower prices for cereals, sugar and meat, which offset increases in dairy and vegetable oils.
From a report by the FAO:
The FAO Food Price Index* (FFPI) averaged 176.6 points in August 2017, down 2.3 points (1.3 percent) from July, but still 10 points (6 percent) above its value a year earlier.
The Salvadoran government has decided to postpone until November 1 the entry into force of new requirements for importers of dairy products.
After meeting with the heath authorities in Nicaragua, which is where most of El Salvador's imports come from, the Ministry of Agriculture and Livestock (MAG) decided to grant importing companies more time to get up to date with the new health requirements in the new regulations.See "El Salvador Tightens Controls on Dairy Imports"